Most people think that it's just the government, somehow, in this shadowy thing between the treasury and the federal reserve, that create and destroy all our money. But 95 % of our money is created from commercial banks when they make loans to people who are creditworthy. So we watch now debt growing expe ly, and its several multiples. That's almost four times g d p, either at the national or the global level,. Even em can't be matched by a finite planet. The overwhelming amount of money right now, i would argue, in the united states, is loaned into existence to by existing assets. There's no physical limit to the value of existing assets.
Show Summary:
On this episode we meet with ecological economist and Professor in Community Development & Applied Economics and Public Administration, Josh Farley.
Money. What is it? Where does it come from? How is it created? How is it tethered to our biophysical balance sheet? What is on the horizon with our monetary system? How might we create and use money differently in the future during a source and sink contained system? Josh Farley explains it all - and explains how the links between money, energy, and the economy will become more central in our lives.
Click here to listen to Josh and Nate’s first conversation.
About Josh Farley:
Joshua Farley is an ecological economist and Professor in Community Development & Applied Economics and Public Administration at the University of Vermont. He is the President of the International Society for Ecological Economics.
For Show Notes and Transcript visit: https://www.thegreatsimplification.com/episode/29-josh-farley